Globalization Various scholars have in the recent past tried to derive a universal definition to globalization to no avail. Generally, we can define globalization as a process that fosters integration and interactions (Yale, 2014) across the world leading to easier exchange of information, cultures, and goods (BBC NEWS, 2014). Indeed, globalization relates to the elimination of barriers between nations courtesy of market liberalization, economic integration, and technological advancements. The increased growth of globalization in the world emanates from the need to achieve global unity, improve global economy, and enhance our social lives.
Notably, globalization has led to both positive and negative effects in the world and hence the continued debate on this subject. In addressing globalization, there is abject need to analyze the dimensions of globalization that include integration and interdependence of national economies, rise of regional economic integration blocs, and the globalization of services. Other dimensions include growth of global investment and financial flows, globalization of production activities, and convergence of buyer lifestyles and preferences. Quite notable is the fact that the worldwide reduction of tariffs, market liberalization, economic integration, and advanced technologies drive globalization.
Indeed, the worldwide reduction of tariffs enhances freedom in international trade by promoting free trade between nations. The reduction of tariffs that defines reduced legal restrictions in international relations removes barriers that relate to the exchange of goods, cheap labor, services, and information between countries, which drives globalization (BBC NEWS, 2014). Moreover, economic integration defines the terms of trade, which helps in establishing effective trade relations between nations. This involves the integration of economic factors that foster international trade. Market liberalization drives globalization by enhancing global competition between developing and developed nations, which allows different nations to trade in fair environment (African Development Bank Group, 2011). Advances in technology are another factor that drives globalization.
Indeed, technological advances foster communication and transportation that helps in the exchange of ideas, information, goods, and services across the globe (The State University of New York, 2014). The emergence of the internet and mobile telecommunications enhance communications that promote easier access to global information that drives globalization. The improved access to information derives great economic capacity, political power, and increases social interactions between nations.
Through the advanced technologies, multinational companies have the capacity to produce and promote new products in the global market. Ideally, advanced technologies derive global integration by developing efficient and effective ways of exchanging resources and products. Notably, globalization has diverse consequences for both society and business firms. Indeed, globalization leads to multinational companies like Shell with branches across the globe. Some of the positive effects of globalization include improved international trade, many transnational companies, and an independent global economy (BBC NEWS, 2014). Moreover, globalization leads to easier access and exchange of resources, products, and services.
This has led to increased foreign direct investment (FDI) with resultant economic benefits to the host and foreign nations. Indeed, through globalization, locals benefit from new employment opportunities, foreign currency, and skills. Globalization fosters the exchange of cultures, ideas, and information between countries. Individuals in different countries can now interact freely and easily through technologies adopted by globalization. Globalization also promotes global initiatives that encourage all nations to address global phenomena like epidemics, disasters, climate change, and deforestation. However, globalization also derives negative consequences that include creating a wider gap between the developed and developing nations through foreign direct investment.
In fact, it is clear that globalization favors developed nations that continue to dominate global trade while developing nations continue to suffer from the demerits of globalization like global warming. Indeed, the increased international trade forces transnational companies to focus on increased productivity and profitability at the expense of worker’s security, fair competition, and environmental conservation. Global companies investing in foreign nations may demean domestic industries, pollute the environment, and offer poor working conditions (BBC NEWS, 2014).
Globalization may also threaten indigenous cultures by promoting global languages and generally accepted norms. Although globalization allows the global population to form social movements, such movements may destabilize the global politics. In my opinion, I think globalization fosters foreign direct investments and international trade that lead to economic development in developed and developing nations. However, there is reputable evidence that negates my opinion by showing how globalization does not address poverty and inequalities across the world. Indeed, by 2005, more than 36 % of people in developing nations were living on less than $1 a day despite hosting various foreign direct investments (University of Sussex, 2010).
Globalization has significantly led to adverse economic effects like the economic depression that led to the increases in food, education, health, and accommodation prices that continue to maintain or enlarge the gap between the poor and the rich. This emanates from the fact that developed nations with FDI transfer most of the profits to their nations at the expense of the host nations. References African Development Bank Group. (2011). Market liberalization.
Retrieved from: http: //www. infrastructureafrica. org/key-msg/sector/market-liberalization-leading-private-investment-has-been-main-driver-mobile-revoluti BBC NEWS. (2014). Globalization. Retrieved from: http: //www. bbc. co. uk/schools/gcsebitesize/geography/globalisation/globalisation_rev1.shtml The State University of New York. (2014). Information Technology. Retrieved from: http: //www. globalization101.org/information-technology/ University of Sussex. (2010). Global Inequality: Is globalization a solution to world poverty? Retrieved from: http: //www. sussex. ac. uk/Users/ssfa2/globalinequality. pdf Yale. (2014). What is Globalization? Retrieved from: http: //yaleglobal. yale. edu/content/about-globalization